Management control systems of U.S. MNCs in Singapore : two case studies

Abstract

Management Control Systems [MCSs] are one of the most emphasised systems in organisations, as they are critical for an organisation's success. The need for control arises as people are rational and maximising individuals who will satisfy their self-interest before the organisation. Therefore, MCSs help by influencing the behaviours of people and ensuring the goals of the subsidiary are in line with the overall corporate goals. This study has two objectives: first, to understand the types ofMCSs used by organisations from the literature and second, to study the MCSs of two U.S. Multinational Corporations [MNCs] in Singapore and its influences by the parent companies. Based on the findings from the two case studies, it seems that both companies tend to use a mixture of controls that influence behaviours of individuals and those that monitor output of their operations. However, the latter plays a more vital role in the control function compared to the former.